China and Cambodia signed a free trade agreement, mutual tariff exemption ratio exceeds 90%
According to reports, October 12, Minister of Commerce Zhong Shan and Cambodian Minister of Commerce Pan Sousa represented the Chinese and Cambodian governments in Beijing and Phnom Penh respectively, and formally signed the Free Trade Agreement between the Government of the People’s Republic of China and the Royal Government of Cambodia via video. The agreement has achieved many breakthroughs in the field of trade and investment. Among them, in terms of trade in goods, China has granted 97.53% of zero-tariff items for trade in goods to Cambodia, and Cambodia has granted zero-tariff items for 90% of China’s goods, which is the highest level in all free trade agreement negotiations between the two parties so far.
A press release on the Ministry of Commerce website stated that the "Free Trade Agreement between the Government of the People’s Republic of China and the Royal Government of Cambodia" provides trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, as well as service trade and investment cooperation in the fields of goods trade and service investment. Wait for specific arrangements. Key areas of cooperation include cooperation under the "Belt and Road" initiative, e-commerce, and economic and technological cooperation.
At the same time, given that China-Cambodia trade structure is highly complementary and has great potential, and Chinese-funded enterprises have extensive investment in Cambodia, the agreement will enable both parties to obtain more trade and investment opportunities from each other’s markets.
In terms of customs procedures and trade facilitation, the above-mentioned person in charge introduced that the two sides agreed to strengthen customs cooperation, further disclose laws and regulations related to bilateral trade, and use risk management and information technology to provide enterprises with efficient and fast customs clearance services. Both parties will allow the goods to apply for pre-ruling in accordance with regulations before the actual entry of the goods, and adopt follow-up investigation methods to strengthen supervision. Cambodia has also established a certified operator coordinator system.
"After the signing of the agreement, both China and Cambodia will perform their respective domestic legal approval procedures to promote the early implementation of the agreement." The head of the International Department of the Ministry of Commerce said in a reporter's question.
China and Cambodia started negotiations in January 2020. After 7 months and 3 rounds of formal negotiations, they announced their completion on July 20, 2020.
The person in charge of the International Department of the Ministry of Commerce of China said that the signing of the agreement is a "new milestone" in the development of China-Cambodia bilateral economic and trade relations, and will surely promote bilateral economic and trade relations to a new level. In the next step, China and Cambodia will perform their respective domestic legal approval procedures to promote the early implementation of the agreement.
What are the highlights of the China-Cambodia Free Trade Agreement?
The China-Cambodia Free Trade Agreement is an agreement with a high level of openness, wide coverage, and mutual benefit and win-win results. It has the following "highlights":
One is to set many "firsts". This is the first free trade agreement signed by my country after the outbreak. It embodies my will to firmly advance the free trade zone strategy and actively build a new system for a higher level of open economy. This is the first free trade agreement to establish a separate chapter for cooperation under the "Belt and Road" initiative. It shows the great vitality of the "Belt and Road" initiative, which is in line with the all-round friendly relations between China and Cambodia.
The second is a high level of openness. The liberalization of goods trade and service market access of the China-Cambodia Free Trade Agreement have reached the highest level of China-Cambodia Free Trade Agreement.
The third is to cover a wide range of areas and achieve mutual benefit and win-win results. The agreement contains chapters on cooperation in the "Belt and Road" initiative, investment cooperation, economic and technological cooperation, and e-commerce, covering a wide range of cooperation areas such as bilateral economy and trade, tourism, transportation, and agriculture.
At the same time, given that China-Cambodia trade structure is highly complementary and has great potential, and Chinese-funded enterprises have extensive investment in Cambodia, the agreement will enable both parties to obtain more trade and investment opportunities from each other’s markets.
Fourth is to achieve high efficiency. The two sides started negotiations in January 2020 to overcome the adverse effects of the epidemic. They organized 1 round of face-to-face negotiations, 2 rounds of video negotiations, and multiple negotiations at the chief negotiator level. The negotiations ended in just 7 months.
Whether it is the round of negotiation, the way of negotiation, and the speed of advancement, they fully reflect the firm willingness of the two parties to reach an agreement efficiently.
What is the significance of signing the agreement?
From the perspective of China-Cambodia relations, the signing of the free trade agreement is an important consensus reached by the leaders of the two countries. The signing of the agreement marks the entry of a new era in the bilateral comprehensive strategic partnership, the joint construction of a China-Cambodia community with a shared future, and the “Belt and Road” cooperation. It is a new milestone in the development of bilateral economic and trade relations, which will surely promote bilateral economic and trade relations to a new level and continuously enhance the well-being of the enterprises and people of the two countries.
From the perspective of international cooperation, the signing of the China-Cambodia Free Trade Agreement reflects the fact that the two countries have firmly grasped the theme of the times of peace and development and firmly supported multilateralism in the context of the current profound and complex changes in the international environment and rising world economic instability. , The attitude and willingness to jointly safeguard trade and investment liberalization and facilitation, and join hands to build a community with a shared future for mankind.
From the perspective of responding to the challenges of the epidemic, the signing of the China-Cambodia Free Trade Agreement is a vivid portrayal of the two countries facing the impact of the new crown pneumonia epidemic, helping each other, helping each other, working hard to cultivate new opportunities in the crisis, and opening a new game amidst changes. The country's economic development in the "post-epidemic era" will also contribute to stabilizing the supply chain of the regional industrial chain and promoting regional economic recovery.
China will provide 950 million free aid to Cambodia
According to the Cambodian China Daily, China has approved the provision of 950 million yuan (approximately US$140 million) in free aid to Cambodia to support the Cambodian government in implementing emergency projects.
These funds will be used to implement priority development projects, including the submarine optical fiber communication cable from Westport to Hong Kong; 71C highway construction project; rural power supply project; promotion of rice and rice export projects; highway 41, 33 and 31 reconstruction and expansion projects; water conservancy Irrigation system project.
OES will also speed up its pace and plans to launch a special line in Cambodia next year to provide more Cambodian Chinese with the best Sino-Cambodian logistics solutions. Stay tuned.